A new national player is on the rise in the credit insurance-related field with the merger of FLS Services, here, and Eldredge Corporation of Indiana. The two companies plan to operate under the name Allied Solutions.
Allied Solutions will have more than 1,250 financial institutions clients, 90% of which are credit unions.
"We wanted to take advantage of the ability to capitalize on our combined resources," said Chris Hilger, president of Eldredge and soon-to-be divisional president of Allied Solutions. "For example, the ability to make greater capital expenditures on technology. This also allows us the opportunity to really start driving a national brand identity."
Eldredge has had the bulk of its business in the Great Lake states, the Midwest and the Mid-Atlantic, while FLS's primary territory has been in the South and Southwest.
Both companies have a history of working with more than just one underwriter in order to provide a variety of different products to their clients, Hilger noted.
"Because we are independent, we are not restricted to offering the products of only one company," said Dick Hetzel, FLS co-president and soon-to-be divisional president of Allied Solutions. "This flexibility allows us to offer our clients the best the marketplace has to offer and solutions tailored to their particular needs."
With dual headquarters in both Texas and Indiana, Allied Solutions will retain the various regional office locations that the two merger partners bring to the table. Ownership also remains intact, but is being expanded to four partners that include Hetzel, Hilger and FLS' other co-president, Bob Lium, and Eldredge EVP Pete Hilger.
While the companies intend to reap the rewards of economies of scale and other typical merger goals, what will credit union clients get out of all this?
"I think they'll see much of what they have always seen," said Chris Hilger. "Both companies have a serious commitment to service. But credit unions will also be seeing an enhanced commitment to technology and product development."
Eldredge and FLS' product line now increases to 21 total products and services they provide to the credit union market. Examples include the following; Accidental Death & Dismemberment Insurance, Balloon Note Financing, Bond & Property Package Insurance, Credit Insurance, Creditor Placed Insurance, Employee Benefit Programs, GAP Protection, Indirect Lending, Investment Services, Mechanical Breakdown Protection and Mortgage Insurance products.
The merger is expected to be completed by Jan. 1, 2001.
